Charleston one of top 50 markets for renting to millennial generation

By Ashley Barker
abarker@scbiznews.com
Published July 8, 2014

Charleston County made RealtyTrac’s list of the 50 best markets for renting residential property to the millennial generation, defined as those born between 1977 and 1992, according to the Q2 2014 Residential Property Rental Report.

Annual gross rental yields for the top 50 millennial rental markets ranged from 5.53% in Charleston County up to 21.32% in Baltimore City, Md., according to the report. The yield is a measure of the annualized average fair market rent of three-bedroom homes in a county divided by the median sales price of residential properties in the area.

Charleston County made RealtyTrac’s list of the 50 best markets for renting residential property to the millennial generation.
Charleston County’s annual gross rental yield — the annualized average fair market rent of three-bedroom homes in a county divided by the median sales price of residential properties in the area — was 5.53%
All 50 counties on the list saw an increase of at least 10% in the millennial demographic between 2007 and 2013 and had a millennial population that represented at least 24% of the total population in 2013. In Charleston County, the millennial demographic increased by 22% from 2007 to 2013.

No other S.C. county made the millennials list.

Another list in the RealtyTrac report ranked five counties in South Carolina among the top 25 best markets for buying residential property rentals in the United States.

Anderson County took the top spot in the country with an annual gross rental yield of 15.33%. The county’s fair market rent for a three-bedroom home was $893 and median sales price was $69,900 during April.

Pickens County — with a $975 fair market rent for a three-bedroom home and $90,000 median sales price — ranked No. 3 in the U.S. with a 13% annual gross rental yield.

Lexington and Dorchester counties were in the top 10, with 11.26% and 9.95% annual gross rental yields, respectively. Lexington’s fair market rent was $1,046 and its median sales price was $111,500, while Dorchester’s rent was $1,160 and its median sales price was $139,900, according to the report.

Greenville County took the 21st spot with a 9.14% annual gross rental yield based on a $975 rent and $128,000 median sales price in April.

For both lists, unemployment rates in all counties were 4.5% or lower in April, and each county on the list had an annual gross rental yield of 9% or higher, the report said.

Other counties on the list included Woodbury County, Iowa, Alachua County, Fla., Spotsylvania County, Va., Allegheny County, Pa., Franklin County, Ohio, and Douglas County, Neb.

RealtyTrac’s report found that median home prices in the 370 counties that were analyzed increased more than 7% on average in the second quarter of 2014 compared to a year ago. The average fair market rents for three-bedroom homes went up an average of less than 1%, the report said.

RealtyTrac Vice President Daren Blomquist said the trend of home prices outgaining rental prices has eroded average returns available to investors buying rental properties.

“Even so, an average annual return of nearly 10% across all the counties we analyzed nationwide is still solid, and investors holding on to rental property for the long term will also typically benefit from home price appreciation on top of the annual returns from rental income,” Blomquist said in a statement.

Reach staff writer Ashley Barker at 843-849-3144 or @AshleyNBarker on Twitter.

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